Earnings: RealNetworks's Q2 Revenues Up, In Losses; Music Revenues Increase Still Slow

This story was written by Rafat Ali.
RealNetworks (NSDQ: RNWK) announced its Q2 2008 earnings today, and was in net losses for the quarter: it has losses of $1.3 million compared, or 1 cents a share, to profits of of $1.3 million in the year ago quarter. Revenues rose 12 percent to $152.6 million from last year's sales of $136.2 million. Analysts surveyed by Thomson Reuters (NASDAQ: TRIN) forecasted Real to lose 2 cents a share on $153 million in sales.

Some reasons why the revenues rose: a 40 percent increase in games division revenues to $34.9 million, of which $4 million was due to the acquisition of TryMedia; a 15 percent increase in Media Software and Services revenue to $29.2 million; a 5 percent increase in Technology Products and Solutions revenue to $51.3 million; and a 1 percent increase in music revenue to $37.2 million.

Operating expenses increased to $109.7 million..that included $9.2 million of related party advertising in Rhapsody America (which means the ads it bought on MTV networks as part of the JV).

Earnings release | Webcast

By Rafat Ali